www.esuperfund.com.au

How Investing in Physical Metals Works


 
 
Invest in Physical Metals (including Gold and Silver)

Clients of ESUPERFUND are permitted to invest in Metals. The Permitted Broker to invest in Metals is Bullion Capital.

 
 
About Bullion Capital Limited

Bullion Capital Limited (BCL) offers investors competitive and transparent access to the physical precious metal market. The BCL service offers your SMSF the ability to buy, sell and securely store physical gold, silver and platinum at the click of a button. Through the provision of comprehensive insurance and secure storage, as well as live access to all financial and accounting records, BCL offers a complete solution for all your SMSF administration requirements, maintaining the compliance of assets held within your Fund.

 
 
Monitoring Transactions

By using our permitted Broker ESUPERFUND is able to electronically access trades and holdings, in order to attend to the SMSF Annual Compliance Requirements. No broker data is required from you each year as we already have the data. It is important to understand that only electronic data files are provided to ESUPERFUND. We have absolutely no access to your Broker Account and cannot actually login to access the required data.

 
 
Direct Ownership

Bullion purchased through BCL is on an allocated basis, meaning legal title remains with your SMSF at all times, with BCL merely storing the bullion on your Fund’s behalf. This is considered to be one of the most transparent and safest forms of bullion investment. All bullion is stored within a secure vault, and fully insured by industry leading experts in physical precious metals vaulting and logistics.

 
 
Trading Platform

BCL gives you direct access to its custom built trading platform, MetalDesk, enabling you to enter anonymous orders into a live market made up of multiple buyers and sellers. This exchange-style architecture aims to offer smaller spreads than the typical bullion dealer model, thus saving you money.

 
 
Currency Risk

All contracts traded through MetalDesk, as well as bullion purchased through the BCL dealing desk, are quoted and traded in Australian dollars, meaning domestic clients are not exposed to any foreign exchange risk.

 
 
Segregated Funds

All clients’ trading funds are held in a segregated, regulated trust account with an Australian authorised deposit-taking institution. At no time does BCL use client funds held in the trust account for its own purposes.

 
 
Storage Rules

Clients who purchase Physical Metals with BCL are not permitted to take physical delivery of metals under the ESUPERFUND platform. In addition, it is noted that Metals purchased through BCL that are deemed to be collectables (such as coins) must be stored with BCL and clients cannot take physical delivery of these Metals. This restriction is a legal restriction imposed by Super Laws which disallows a SMSF taking Physical delivery of Collectables.

 
 
Storage with BCL

Metals purchased and stored with BCL are stored at multiple pricing and storage locations across Australia allowing clients to store their Metals in the most geographically convenient location, and also to take advantage of any pricing differentials that exist, so as to yield greater profits. Physical Metals purchased through BCL are stored and transported by reputable, third party vaulting and logistics operators, and are fully insured. Physical Metals are subject to monthly stocktake, as well as annual inspection by world renowned and independent audit and inspection specialists, inspectorate.

 
 
Insurance

Physical Metals purchased and stored through BCL are fully insured. It is noted that Collectables must be insured by law.

 
 
Minute the Purchase

When you purchase Physical Metals for your SMSF you will need to minute how the Investment conforms to your Investment Strategy. Typical reasons for the purchase of Physical Metals are for capital appreciation, a hedge against inflation or a hedge against a depreciating currency. A Standard Minute can be found here.

 
 
Evidence of Holding at 30 June Annually

Data for Physical Metals purchased through BCL is electronically accessible by ESUPERFUND alleviating you of the responsibility of maintaining these records at financial year end.

 
 
Metals can be purchased in a variety of ways

It is also noted that ESUPERFUND clients are also permitted to trade Metals and Commodities using CFDs as detailed here. CFDs allow your SMSF to invest in a wide range of Metals and Commodities including but not limited to, Agriculture, Energy, Gold, Silver, Oil, Coffee and Sugar. CFDs allow you to bypass standardised futures trade sizes and trade smaller quantities. Importantly there is no risk of the metal actually being delivered. Clients of ESUPERFUND are also permitted to invest in Exchange Traded Commodities (ETCs). ETC's allow your SMSF to invest in Gold, Silver and other Commodities. ETCs track the performance of an underlying physical Commodity or Commodity Index allowing investors to gain direct exposure to the underlying Commodity without the need to trade futures or take physical delivery of the Commodity. Aside from the underlying asset, ETCs are very much like Exchange Traded Funds (ETFs) and are traded and settled on the ASX, just like shares, making them both accessible and affordable. More can be found here.

 
 
No Advice

The Bullion Capital Metals Service is provided on a No Advice Basis. Clients will need to determine if the Bullion Capital Limited Product is appropriate for their financial situation based on their particular needs. ESUPERFUND makes no representation whether any statement made above in relation to Bullion Capital is accurate and clients will need to seek their own advice to determine if this service is suitable for their SMSF requirements.

 
 
Bullion Capitals Limited Login

To login to the Bullion Capitals Limited Account please click here

 
 
Bullion Capital Limited Product Disclosure Statement

The Bullion Capital Limited Product Disclosure Statement should be carefully reviewed prior to applying for Physical Metals Account using BCL. The Product Disclosure Statement can be found here

 
 
Apply Now

To apply for a BCL Trading account, simply complete the Online Application here. Importantly you must apply for a SMSF Trading Account when completing the application.

 
 
Can your SMSF use Other Metal Brokers?

No. ESUPERFUND Clients are not permitted to invest in Metals with Brokers other than our Permitted Broker.